IRA Phase Out

[RayT]

Is it correct that both regular IRA and ROTH are unavailable to joint filers with a MAGI of more than $166,000. My software allows a regular but not a ROTH. The joint filers' MAGI is over $200,000.

Thanks for comments.

[Roland Slugg]

Is it correct that both regular IRA and ROTH are unavailable to joint filers with a MAGI of more than $166,000.

No. There is no income limit for a traditional IRA, unless the T/P or his spouse is also covered by an employer plan.

[New York Enrolled Agent]

Is it correct that both regular IRA and ROTH are unavailable to joint filers with a MAGI of more than $166,000.

That is not correct.

A contribution to a Roth IRA is limited to those taxpayers who have "compensation" and whose AGI does not exceed the applicable limit.

A contribution to a traditional IRA is not limited by AGI. Virtually any taxpayer who has "compensation" and has not yet reached 70½ may contribute to an IRA. The ability to deduct the contribution may be limited as per §219 by factors such as AGI, marital status and active participation in a pension plan.